Question - Applying the Cost of Goods Sold Model
Milton Company reported inventory of $110,000 at the beginning of 2013. During the year, it purchased inventory of $625,000 and sold inventory for $950,000. A count of inventory at the end of the year determined that the cost of inventory on hand was $44,000.
Required:
1. What was Milton's cost of goods sold for 2013?
2. What is Milton's gross margin for the year?